Many people don't know the purpose of reform and opening up. It is necessary to gradually reform the management mode that used to direct economic activities by administrative orders, which is not only inefficient, but also makes the government bear great risks, and the government credit can never go bankrupt, so all economic activities have become risk-free behaviors, which in itself has caused a great burden to our economic development.
This is the essence of city investment. With the support of local government credit, he can get the needed funds at the local level without pressure. However, the credit of local governments cannot guarantee their influence outside administrative divisions. When financing has to be expanded, the risk will be uncontrollable.
I won't say much about the influence of local governments. Friends who have worked in factories should have a personal experience of our institutional advantages in the past two years. What does it mean to concentrate on doing great things, what does it mean to be responsive, and what does it mean to serve the people wholeheartedly?
Returning to the topic of reform, reform is the process of gradually changing government risk-taking into government risk management, and then further into government risk management. Urban investment is a small step in the wave of reform. Its duty is to turn the direct investment construction of local government into the financing construction of local government, and finally it must be the step towards the guidance construction of local government. This is the ultimate trend of history, and it will only be difficult or difficult, not endless.